Otter Tail County recently announced that it will be extending the property tax rebate program for new single- and two-family homes. This tax rebate program, initiated in 2019, is part of Otter Tail County’s "Big Building" housing development initiative. The program encourages new investment and construction in single- and two-family homes, which are needed for economic and social growth in the surrounding communities.
Through the tax rebate program, homeowners and builders receive financial assistance in the form of rebated or refunded property taxes, making it more feasible to create and invest in housing options in Otter Tail County.
Initially, applicants could receive a rebate of up to $5,000 of the county’s portion of future property tax and $5,000 of the city’s portion in certain cities. With the expansion, applicants can now receive up to $10,000 of the county’s portion of future property taxes and $5,000 of the city’s portion. The increase will be extended to existing program applicants from 2020 and 2021, and the program application for new applicants has been extended to December 2024.
Housing growth is considered to be a priority in Otter Tail County, and will hopefully address workforce needs and other residential needs. There are more than 1,000 available jobs in the county and increasing the accessibility of affordable housing will help attract newcomers to fill these job openings. It will also provide an improved housing supply for existing residents looking for more suitable or alternative housing options.
Otter Tail County Commissioner Lee Rogness said in a recent press release that the extension has been made because the rebate program has proven to be a successful solution for housing growth.
“The board and county staff recognize the supply chain and construction cost challenges that new homeowners and builders are facing to address the growing need for housing,” he stated. “Allowing for more time and a larger rebate amount will hopefully continue to encourage those thinking about building a new home to make the investment now while this support is available.”